 "HAL IPO")
Big size, small demand
The recently-concluded initial public offering (IPO) of state-owned Hindustan Aeronautics (HAL) has created a unique record - its Rs 42-billion offering saw only 17 applications from institutional investors, which is the least number of applicants for an IPO of over Rs 10 billion. Not surprising then that the issue needed the support of state-owned Life Insurance Corporation. “This is a new low in terms of institutional demand. Such a large offering should have at least seen 50 applications from institutional investors. The disinvestment department could have handled the issue better,” said a banker.
Pavan
The recently-concluded initial public offering (IPO) of state-owned Hindustan Aeronautics (HAL) has created a unique record - its Rs 42-billion offering saw only 17 applications from institutional investors, which is the least number of applicants for an IPO of over Rs 10 billion. Not surprising then that the issue needed the support of state-owned Life Insurance Corporation. “This is a new low in terms of institutional demand. Such a large offering should have at least seen 50 applications from institutional investors. The disinvestment department could have handled the issue better,” said a banker.
Pavan
